The Ethereum price gained strength and climbed above $2,350. ETH is now showing positive signs and could extend gains towards the $2,500 level.
- Ethereum is gaining bullish momentum above the $2,350 zone.
- The price is trading above USD 2,320 and the 100-hourly Simple Moving Average.
- There was a break above a key ascending channel that formed at resistance near $2,350 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct lower, but dips could be limited below the $2,335 support zone.
Ethereum price turns green
Ethereum price formed a base above the USD 2,220 level and started a decent increase. ETH outperformed Bitcoin and was able to clear some hurdles around the $2,350 level.
There was a break above a key ascending channel that formed with resistance around $2,350 on the hourly chart of ETH/USD. The bulls pushed the pair towards the $2,400 level. It reached a high near $2,389 and the price is now consolidating gains.
There was a small decline below the USD 2,365 level. Ether fell below the 23.6% Fib retracement level from the recent rise from the $2,282 swing low to the $2,389 high.
Ethereum is now trading above $2,320 and the 100-hourly Simple Moving Average. On the upside, the first major resistance is around the $2,380 level. The next major resistance is near USD 2,420, above which the price could rise and test the USD 2,485 resistance.
Source: ETHUSD on TradingView.com
If the bulls stay in action, they could even push the price above the USD 2,550 resistance. In the mentioned case, the price could rise towards the USD 2,550 level.
Another drop in ETH?
If Ethereum fails to clear the USD 2,380 resistance, it could initiate a downward correction. The initial downside support is near the $2,350 level and the channel trendline.
The next major support could be the $2,335 zone or the 50% Fib retracement level from the recent rise from the $2,282 swing low to the $2,389 high. A clear move below the USD 2,335 support could send the price towards USD 2,250. The main support could be at USD 2,220. Any further losses could send the price towards the USD 2,120 level.
Technical indicators
hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
RSI per hour – The RSI for ETH/USD is now above the 50 level.
Major support level – $2,335
Major resistance level – $2,380
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